§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer if the Inland Revenue in court challenged the Woolwich tax model of the effects of regulations 3 and 11 (1985).
§ Mr. MaplesYes. The Inland Revenue did not accept the conclusions of the Woolwich building society based on its hypothetical tax model.
§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer if he will list the dates beginning and ending the financial years for which building societies' payments of members' income tax in(a) January 1984, (b) January 1985 and (c) January 1986 satisfied the Inland Revenue and the dates beginning and ending the period of deduction of tax to which the 1985, 1986 and 1991 legislation and regulations are directed; and if he will now add the information to a simple chart and place it in the Library.
§ Mr. Maude[holding answer 21 June 1991]: Payments of tax by building societies in January 1984, 1985 and 1986 under the former annual accounting arrangements satisfied their liability under those arrangements for the tax years 1983–84, 1984–85 and 1985–86 respectively.
The Building Societies Regulations 1986, to which the 1985, 1986 and 1991 legislation relates, required societies to account for tax from 1986–87 onwards at the end of each quarter. In addition, under transitional provisions, societies were required to account for the tax on interest paid to their investors in the gap period between the end of their accounting period in 1985–86—which formed the basis for the January 1986 payment under the annual arrangements—and 5 April 1986.
I have placed a chart explaining the sequence of events in the Library.